Question

Ram Prashad keeps his books on Single Entry System and from them and the particulars supplied, the following figures were gathered together on 31^st March, 2018:
Book Debts ₹ 10,000; Cash in Hand ₹ 510; Stock-in-Trade (estimated) ₹ 6,000; Furniture and Fittings ₹ 1,200; Trade Creditors ₹ 4,000; Bank Overdraft ₹ 1,000; Ram Prashad stated that he started business on 1^st April with cash ₹ 6000 paid into bank but stocks valued at ₹ 4,000. During the year he estimated his drawings to be ₹ 2,400. You are required to prepare the statement, showing the profit for the year, after writing off 10% for Depreciation on Furniture and Fittings.

Answer 1

Books of Ram Prashad Statement of Affairs as on March 31, 2018
Liabilities	Amount (Rs)	Assets		Amount (Rs)
Trade Creditors	4,000	Book Debts		10,000
Bank Overdraft	1,000	Cash in Hand		510
Capital (Balancing Figure)	12,590	Stock		6,000
		Furniture and Fittings	1,200
		Less: 10% Depreciation	120	1,080
	17,590			17,590

Statement of Affairs as on April 01, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital (Balancing Figure)	10,000	Bank	6,000
		Stock	4,000
	10,000		10,000

Statement of Profit or Loss for the year and March 31, 2018
Particulars	Amount (Rs)
Capital as on March 31, 2018	12,590
Add: Drawings	2,400
	14,990
Less: Capital as on April 01, 2017	(10,000)
Profit made during the year 2017-18	4,990